XTRA:RHM

Stock Analysis Report

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Executive Summary

Rheinmetall AG manufactures and supplies automotive components and defense equipment in Germany and internationally. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Rheinmetall's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RHM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

RHM

-0.5%

DE Industrials

-1.8%

DE Market


1 Year Return

-29.7%

RHM

5.1%

DE Industrials

1.7%

DE Market

Return vs Industry: RHM underperformed the German Industrials industry which returned 6% over the past year.

Return vs Market: RHM underperformed the German Market which returned 2.6% over the past year.


Shareholder returns

RHMIndustryMarket
7 Day-1.0%-0.5%-1.8%
30 Day-7.3%-5.9%-1.6%
90 Day-8.9%-3.9%-1.8%
1 Year-27.2%-29.7%19.9%5.1%4.9%1.7%
3 Year-19.7%-25.2%19.4%1.4%2.0%-6.9%
5 Year52.0%37.0%73.9%38.0%24.2%6.5%

Price Volatility Vs. Market

How volatile is Rheinmetall's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rheinmetall undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RHM (€74.68) is trading below our estimate of fair value (€166.29)

Significantly Below Fair Value: RHM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RHM is unprofitable, so we can't compare its PE Ratio to the XE Industrials industry average.

PE vs Market: RHM is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RHM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RHM is overvalued based on its PB Ratio (1.9x) compared to the DE Industrials industry average (1.4x).


Next Steps

Future Growth

How is Rheinmetall forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

83.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RHM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: RHM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RHM's is expected to become profitable in the next 3 years.

Revenue vs Market: RHM's revenue (6.6% per year) is forecast to grow faster than the German market (6.1% per year).

High Growth Revenue: RHM's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RHM's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Rheinmetall performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RHM is currently unprofitable.

Growing Profit Margin: RHM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RHM is unprofitable, but has reduced losses over the past 5 years at a rate of 15.3% per year.

Accelerating Growth: Unable to compare RHM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RHM is unprofitable, making it difficult to compare its past year earnings growth to the Industrials industry (-1.9%).


Return on Equity

High ROE: RHM has a negative Return on Equity (0.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rheinmetall's financial position?


Financial Position Analysis

Short Term Liabilities: RHM's short term assets (€4.1B) exceed its short term liabilities (€2.9B).

Long Term Liabilities: RHM's short term assets (€4.1B) exceed its long term liabilities (€2.3B).


Debt to Equity History and Analysis

Debt Level: RHM's debt to equity ratio (52.2%) is considered high.

Reducing Debt: RHM's debt to equity ratio has reduced from 62.2% to 52.2% over the past 5 years.

Debt Coverage: RHM's debt is well covered by operating cash flow (40.6%).

Interest Coverage: RHM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Rheinmetall current dividend yield, its reliability and sustainability?

3.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RHM's dividend (3.21%) is higher than the bottom 25% of dividend payers in the German market (1.18%).

High Dividend: RHM's dividend (3.21%) is low compared to the top 25% of dividend payers in the German market (3.68%).


Stability and Growth of Payments

Stable Dividend: RHM's dividend payments have been volatile in the past 10 years.

Growing Dividend: RHM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: RHM is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RHM's dividends in 3 years are forecast to be well covered by earnings (33.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Armin Papperger (57 yo)

7.75yrs

Tenure

€5,495,000

Compensation

Mr. Armin Papperger serves as the Chief Executive Officer of Rheinmetall Ag of Rheinmetall Automotive AG (formerly known as KSPG AG). Mr. Papperger has been the Chairman of the Executive Board and Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Armin's total compensation ($USD6.50M) is above average for companies of similar size in the German market ($USD2.39M).

Compensation vs Earnings: Armin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Armin Papperger
Chairman of the Executive Board7.75yrs€5.50mno data
Helmut Merch
CFO and Member of Executive Board & Member of the Management Board Defense7.75yrs€3.09mno data
Peter Krause
Labor Director of Human Resources & Member of Executive Board3.75yrs€1.97mno data
Jörg Grotendorst
Member of Executive Board0.50yrno datano data
Franz-Bernd Reich
Head of Investor Relationsno datano datano data
Michael Salzmann
Chief Compliance Officer6.25yrsno datano data
Rolf Giebeler
Senior Executive Officer Law & General Counsel3.75yrsno datano data
Peter Rücker
Head of Corporate Communicationsno datano datano data

5.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: RHM's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andreas Georgi
Member of Supervisory Board18.25yrs€135.00kno data
Detlef Moog
Member of Supervisory Board10.25yrs€95.00kno data
Dagmar Muth
Employee Representative Supervisory Board Member5.25yrs€95.00kno data
Ulrich Grillo
Chairman of Supervisory Boardno data€280.00kno data
Klaus Draeger
Member of Supervisory Board3.42yrs€95.00kno data
Michael Mielke
Employee Representative Supervisory Board Member10.08yrs€80.00kno data
Klaus-Günter Vennemann
Member of Supervisory Board4.42yrs€90.00kno data
Marion Weissenberger-Eibl
Member of Supervisory Board4.42yrs€90.00kno data
Susanne Hannemann
Member of Supervisory Board8.42yrs€100.00kno data
Daniel Hay
Deputy Chairman of Employee Representative Supervisory Board0.25yr€95.00kno data
Markus Schaubel
Member of Supervisory Board6.25yrs€95.00kno data
Sven Schmidt
Member of Supervisory Board6.25yrs€100.00kno data

6.3yrs

Average Tenure

58yo

Average Age

Experienced Board: RHM's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rheinmetall AG's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Rheinmetall AG
  • Rheinmetall Platz 1
  • Düsseldorf
  • 40476
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNMB.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
RHMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
RHMXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
0NI1LSE (London Stock Exchange)YesCommon StockGBEURJan 1992
RHMDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
RHMSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
RHMETLX (Eurotlx)YesCommon StockITEURJan 1992
RHMWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
RNMB.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.2 ORDUSUSDDec 2008
RHMBBST (Boerse-Stuttgart)UNSP ADR EACH REPR 0.2 ORDDEEURDec 2008

Biography

Rheinmetall AG manufactures and supplies automotive components and defense equipment in Germany and internationally. The company’s automotive products include mechatronics, such as cutting emissions, actua ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 20:53
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.